Be clear on the objective of your ad campaign and then decide to go with the right smart bidding strategy that suits your business goals. Measure the conversions accurately using the traditional hard-code method or use a CDP like CustomerLabs to set up conversion tracking seamlessly. Better conversion and conversion value data leads to accurate predictive bidding as accurate information is provided to the smart bidding algorithm.

Use the broad match keyword strategy when you opt for smart bidding as it offers a wide range of contextual signals to the ad algorithm resulting in better results.

If you want to optimize your ROI (Return on Investment), choosing either the maximize conversion value or the tROAS strategy is the best because not all conversions get you equal value. Optimizing this will help you achieve better ROAS (Return on Ad Spend) leading to increased revenue and profits.

Initially, when starting, the ideal target cost per action is the historical average cost per action your ad campaigns were getting. However, keep in mind to not set an over-aggressive tCPA because it will negatively impact your ad campaigns.

The tROAS you set should be based on the historical average return on ad spend (ROAS) your ad campaigns have received. Set a realistic tROAS that is lower than the historical average ROAS for better ad campaign performance. In the maximize conversion value bid strategy, you should set the tROAS only after you wait for a certain number of days. You can find the time you have to wait for every single campaign in detail in the blog.